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Despite the broad interest among Americans for direct-to-consumer (DtC) shipping of beer and spirits, there is clear reluctance among state legislators to change laws to enable these sales. In California, the would-be DtC shipping expansion bill SB 620 was recently amended by the State Assembly in a way that will severely impair the ability of […]

When it comes to the three-tier system of beverage alcohol sales, there is perhaps no more important relationship than that between a beverage supplier and their distributors (also known as wholesalers). The support provided by distributors is invaluable in accessing a state’s market, from handling complex logistical arrangements to guiding a supplier on state laws […]

Have you ever wanted to order your favorite out-of-state liquor and get it shipped right to your front steps? The COVID-19 pandemic pushed consumers to rethink how they obtain the necessities and conveniences, but ordering distiller spirits for home delivery is not that easy, with only eight locales nationally permitting the direct-to-consumer (DtC) shipping of […]

Tax compliance can easily become an overlooked area as alcohol producers work on numerous aspects of their three-tier distribution compliance, including state license forms and brand registration requirements. For alcohol producers distributing in the three-tier system, excise tax determination and reporting is especially critical. Businesses must ensure they stay compliant as they scale into new […]

What’s the difference and why does it matter? Consumers may not care about the legal technicalities of how their favorite alcoholic beverages arrive at their front doors, but federal and state regulators absolutely do. Here’s a quick guide to what producers and retailers must know about direct-to-consumer (DtC) shipping versus local delivery of beverage alcohol. […]

In 2022, wine producers and wine consumers can enjoy unparalleled access to each other through the market for direct-to-consumer (DtC) shipping of wine. The current map for DtC wine shipping of 47 states and the District of Columbia, is thanks in no small part to vigorous lobbying and advocacy efforts over the past few decades, […]

For suppliers of beverage alcohol, one of the most critical steps in getting to market is ensuring that their product labels comply with all applicable federal and state laws. An alcohol label contains critical information identifying the contents and producers, and as such it is highly regulated with rules at both the federal and state […]

This blog was updated on March 9, 2023. Every 1099 form transmitted to the IRS has the potential to become a costly penalty; these penalties can be alleviated with proactive TIN matching. For organizations experiencing rapid growth, an influx of new contractors, distributors or service providers can be exciting, but fraught with risk as tax […]

Direct-to-consumer (DtC) spirits shipping is increasingly becoming a hot topic in the craft beer and spirits worlds, with both producers and consumers pushing for greater access. However, while 47 states and the District of Columbia allow wine to be shipped DtC, just six states and D.C. do so for spirits. Several states have bills that […]

Mergers and acquisitions (M&A) have always been inherent in the financial institution landscape but have recently increased at an unprecedented pace. A recent Fortune.com article indicated a whopping $2.4 trillion in M&A deals in 2021, up 158% from last year. In February 2022, the FDIC prioritized policy updates to the 25-year-old Bank Merger Act in […]

This blog was updated on March 24, 2023 Did you know that approximately one in 10 people have unclaimed property (UP) in their name? Research conducted by Sovos found that there is upwards of $77 billion in UP assets currently in the United States. As states crack down to close the estimated $600 billion tax […]

Brandy registrations see impressive 322% spike from Q4 2021  As spring and the warmer months inch closer, beverage alcohol brand registration patterns are also continuing to creep higher. The industry is perhaps gaining a better understanding of how to move forward in a marketplace working through a pandemic. There were increases in Product Registration Online […]

Sovos ShipCompliant’s Alex Koral, regulatory general counsel, invited Tom Wark, executive director of the National Association of Wine Retailers and author of the Fermentation Newsletter, for a conversation about the three-tier system’s role in the modern-day beverage alcohol regulatory landscape. Tom shares his take on how Prohibition may have initially shaped the approach to regulating […]

This blog was updated on January 25, 2023. On July 13, 2016 the Uniform Law Commission (ULC) approved its drafting committee’s final draft of the Revised Uniform Unclaimed Property Act (RUUPA). The approved RUUPA is now considered the latest version of a model law that will serve as reference for state legislatures in modifying and […]

The three-tier system, under which beverage alcohol is predominately sold in the United States, establishes a clear distinction between the different “tiers” of the market. As it is designed to work, alcohol suppliers sell solely to wholesalers, who in turn sell solely to retailers, who then are the entities that consumers purchase alcohol from. In […]

With the annual 2021 statutory filing season behind us, the focus now is on 2022 with all the accounting and reporting changes that it will entail. Do not be fooled into thinking that implementation of these changes will be effortless or without a time investment. Hopefully these items have been considered and addressed already. However, […]

West Virginia’s governor signed WV HB 4511 into law on March 28, 2022. The newly enacted law includes significant changes to West Virginia’s unclaimed property. The provisions of this bill will become effective June 10, 2022, which is 90 days after its passage by the legislature. The changes are as follows: Electronic Mail: The definition […]

Editor’s note: This blog was updated on December 28, 2022 Update: Since this content was published, the IRS released guidance that the implementation of the reduced $600 threshold for 1099-K reporting will be delayed until tax year 2023.  As a result, the federal threshold for the 1099-K form reporting for tax year 2022 will remain unchanged […]